It estimates that about 4.4 million mortgages are expected to see payments rise by 2027, including £500-per-month hikes for around 420,000 households. However, about a quarter of borrowers are set to see payments fall, and the Bank said households were better equipped to cope with mortgage repayments than predicted earlier this year.

Half of homebuyers with a mortgage – 4.4 million - face ‘extreme payment shock’ as a result of higher repayments in the next three years. Figures published by the Bank of England today show that millions of people who are due to remortgage over the next few years will have no option but to sign up to a new deal that has higher interest rates and monthly repayments.